Crowd Analysts vs. Institutional Analysts – A Comparative Study on Content and Opinion

Steffen Bankamp (), Nicole Neuss () and Jan Muntermann ()
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Steffen Bankamp: University of Goettingen
Nicole Neuss: University of Goettingen
Jan Muntermann: University of Goettingen

A chapter in Innovation Through Information Systems, 2021, pp 492-508 from Springer

Abstract: Abstract The ongoing digital transformation shapes the world of information discovery and dissemination for investment decisions. Social investment platforms offer the possibility for non-professionals to publish financial analyst reports on company development and earnings forecast and give investment recommendations similar to those provided by traditional sell-side analysts. This phenomenon of “crowd analyst reports” has been found to provide an adequate alternative for non-professional investors. In this study, we examine the informational value of these crowd analyst reports regarding their timeliness in publishing and their originality as for content and opinion. Our findings suggest that crowd analysts strongly rely on previously published institutional reports. Therefore, crowd analysts do not pose a threat to institutional analysts at this time, however, they provide a more accessible information basis and improve decision-making for individual investors.

Keywords: Social investment platforms; Social media; Crowd analysts; Financial analysts; Natural language processing (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnichp:978-3-030-86797-3_33

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DOI: 10.1007/978-3-030-86797-3_33

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